Sept. 8. Home prices across the U.S. keep marching on, especially in the South and West, according to the new S&P CoreLogic Case-Shiller Indices, a leading measure of U.S. home prices.
June data, the latest available, shows that home prices continued their rise across the country over the last 12 months.
The national index rose 5.1 percent in June, unchanged from May. Portland led the way with a sizzling 12.6 percent year-over-year price increase, followed by Seattle with 11 percent and Denver with a 9.2 percent rise. It’s doubtful that’s sustainable, of course. Charlotte was right in there at Case-Shiller’s national average of the Top 20 markets by size: 5.1 percent.
“Home prices continued to rise across the country led by the West and the South,” says David M. Blitzer, managing director of the Index Committee at S&P Dow Jones Indices. Nationally, home prices have risen at a consistent 4.8 percent annual pace over the last two years without showing any signs of slowing.
Some markets may have already since their most rapid growth in home prices. According to Case-Shiller, home prices rose only 2 percent in New York and Washington, D.C., and 3 percent in Chicago. Of course, that’s nothing to sneeze at.
Sales of existing homes are at running at about 5.5 million units with inventory levels under five months, indicating a fairly tight market. Meanwhile, sales of new single-family homes were at a 654,000 seasonally adjusted annual rate in July, the highest rate since November 2007.
While the real estate sector and consumer spending are contributing to economic growth, business capital spending continues to show weakness, not so much in the Charlotte region, which continues to be a growth market.
Lake Norman Realty has just opened a second office in Mooresville; Allen Tate has just opened a Statesville office.
“2016 may prove to be the best year ever for real estate in the Lake Norman region,” said Abigail Jennings, president of Lake Norman Realty. “Looking ahead, we are anticipating another strong year of sales for 2017,” she said.
Meanwhile, it doesn’t look like the supply of new homes is going to moderate prices of existing homes.
“There is a scarcity of land ready to build on as well as a lengthy process to ready that raw land for development,” said Stephanie Gossett, regional vice president for Allen Tate in the Lake Norman region.
“The builders have been trying to catch up with demand, but this, along with higher labor and materials costs, are also driving prices of new construction up. Consequently, a buyer who wants a new home is sometimes paying up to 30 percent more for that home than the competing resale,” she said.
This has many homeowners who are sitting at below 4 percent interest rates in their current homes thinking they may just stay put awhile, which is also not helping the supply issue for would-be buyers of those resales.
In Cornelius
- A 6,000-square-foot home at 19209 Hidden Cove Lane in The Peninsula has sold for $1.3 million after being listed by Dixie Dean of Allen Tate for $1.349 million. The lakefront home sits on a quiet cove with good views, balconies, a screened porch and a lakefront terrace. The lake level includes a man cave and a wine cellar. There is an office on the main floor, as well as a master suite with a fireplace. Upstairs are three bedrooms and a walk-in attic. The house, which is assessed at $1.19 million, was on the market for 18 days. Pam
- A 4,545-square-foot house on the lake has sold for $1.87 million after being listed at $1.9 million by Sunny Yates with Keller Williams in Cornelius. The house, which was on the market 2.5 months, has a tax value of $1.28 million. Located at 16418 Pinwhenny Road, the house has a coastal look with water views from most of the rooms. There is a master suite and four guest suites, not to mention a resort style pool area. Lori Jackson of Ivester Jackson represented the buyers.
